2023-09-15 06:22:00
Start with fanfare on Wall Street for the British designer of microprocessors Arm, whose shares jumped almost 25% on Thursday compared to the price set at the opening of the markets on Wednesday. Arm shares closed at $63.59, 24.68% higher than Arm’s $51 on Wednesday.
Can Arm really count on the AI craze to succeed in its IPO?
At Thursday’s closing price, Arm is valued at 65 billion euros. The first day of trading often gives the dynamics of a company’s stock market performance during its first months on the market. Arm’s first day of trading therefore marks a solid start for the largest IPO in almost two years, and that of the electric car manufacturer Rivian, valued at 77 billion euros.
“Successful IPO”
« It’s a successful IPO », Estimates Salman Malik, partner at Anson Funds in Toronto. “ This will have a positive impact on future IPOs, and it shows that the AI sector is dynamic”. « We are delighted to go public today, happy for all our employees, our partners and our developers », Explained, on CNBC, the general director, Rene Haas.
It is in fact a return to the stock market for Arm, which already had a stint on the stock market from 1998 to 2016, before the Japanese investment company SoftBank Group took it over for $32 billion. Behind this IPO, SoftBank chose to sell only around 10% of Arm’s capital.
Arm: baptism of fire at Nasdaq for the British champion of electronic chips
As for the remaining balance, the boss and founder of SoftBank, Masayoshi Son, said on CNBC that he wanted to keep it “ as much as possible, for as long as possible “. However, the fact that SoftBank remains the owner of around 90% of the shares might make Arm shares more volatile on the stock market, where it is more complex to find a seller or a buyer when the number of shares in circulation is limited. Other major IPOs might follow this year, including Instacart or Birkenstock.
1694977508
#Arms #debut #Nasdaq #bang #stock #soars
